Dáil Éireann Debate, Wednesday - 20 September 2023
113. Deputy Richard Boyd Barrett asked the Minister for Transport if he has met with or will meet with the IAA in relation to their decision to cease payment of increases in pensions, in contravention of The Irish Aviation Authority Act 1993, Article 41 (5) and Article 22 para 4 (a) of EU Commission Regulation No. 2019/317, and whether he can explain the rationale for this; and if he will make a statement on the matter. [40168/23]
View answerFrom 1 May 2023 responsibility for past pensionable remuneration for all Irish Aviation Authority (‘IAA’) staff, transferred from the IAA to AirNav Ireland. In line with the Rules of the Pension Plan any increases to pensions in payment are at the discretion of AirNav Ireland and where proposed, are subject to ministerial approval.
In 2014 in the light of adverse market conditions and falling bond yields, the Board of the Irish Aviation Authority took a decision to cease accruing for discretionary increases to pensions in payment. The decision followed agreement with the Staff Panel of Trade Unions in 2011 on a Pension Recovery Plan to address a significant deficit in the Main Pension Plan. The Pension Recovery Plan covered the period 2011 to 2018. It was necessary to agree a second Pension Recovery Plan in 2019 which remains in place until 31 December 2024. Both pension recovery plans, which were concluded with consent of Pension Trustees, do not provide for increases to discretionary benefits. The Main Pension Plan was closed to new entrants on 31 December 2011. The priority of AirNav Ireland is to protect core pension benefits.
AirNav Ireland is a regulated State company, and a large portion of its income derives from charges applied for air traffic control services which it provides in Irish controlled airspace. These charges are set at EU level, in accordance with an economic regulatory process administered by the EU Commission. In setting the charges, a whole range of costs and service level issues are considered and subject to detailed analysis, including staffing costs and pensions costs.
The Board of AirNav Ireland has recently agreed to providing a 2% increase in pensions in payment with effect from 1 January 2023. While the Rules of the Pension Plan allow AirNav to grant such increases, they also require the authorisation of the Minister for Transport, given with the concurrence of the Minister for Public Expenditure, NDP Delivery and Reform to execute any such increases. Further, in line Circular 16/2021 (Code of Practice for the Governance of State Bodies, Amendments to the Annex on Remuneration and Superannuation), Ministerial approval is also required for inter alia changes to pension scheme benefits, such as pension increases
AirNav Ireland has sought the necessary authorisation and approvals and the matter is under consideration.
